The terms of the negative interest rate will depend upon whether the customer uses Danske Bank for their primary personal bank account – which in the Danish context means the so-called NemKonto, used for things receiving wages and automatic payments to the state.

The bank revealed in a press statement last week, that customers who have a Danske Bank NemKonto and at least 1.5 million kroner (200,000 euros) deposited with Danske Bank and customers without a Danske Bank NemKonto with more than 750,000 kroner (100,000 euros) saved with the bank will in future pay interest rates of negative 0.75%.

Thomas Mitchell, Danske Bank’s head of personal banking Denmark, said: “We must accept that the unusually low-interest rates and the negative interest rates will continue for several years to come.

“At the same time, we can see increased interest in placing money with us from customers with whom we do not otherwise have business. That is unsustainable in the long run, and we feel compelled to let the interest rates impact on very large deposits.”

The bank is to exempt various types of savings such as pensions, investments and child savings, from the measure, The Local reports.

Danske Bank has estimated that the changes will affect 1% of its personal banking customers.